Home Loans: What You Need to Qualify for a Mortgage Today

Getting a home loan isn’t always as difficult as a home buyer might think. As long as a home buyer has stable income, a solid credit rating and a decent debt-to-income ratio they can usually start looking for a mortgage immediately. Those who are interested in buying a home soon should first look over their budget to determine their debt-to-income ratio. Most loans require a debt-to-income ratio of 36 percent, which means that the amount of debt payments the buyer has every month cannot exceed 36 percent of their gross, not net, income.

Buyers should also determine how much money they can truly afford to spend on housing based on a comprehensive monthly budget and they should check their credit score. A credit score of over 700 is usually considered good, though some loans only require a credit score above 650 to qualify. Once all of these standards have been met the buyer can begin applying for approval with various home loans to get a sense of what they will qualify for. Buyers can also work with their mortgage lender to determine ways they can increase their spending power.

For more information about how to qualify for a mortgage today contact Cary Amo.